October 7, 2022

– Advertisement –

– Advertisement –

key findings:

– Advertisement –

» 44% of Americans believe that government spending is the root cause of inflation.

» Also, 75% of Americans favor stimulus checks as a means to combat inflation.

– Advertisement –

» 70% of consumers report buying generic brands with increased frequency.

» 49% of respondents say they are either saving less for retirement or not saving at all.

» 65% don’t know they can use cash back credit cards and cash back browser extensions to “double dip” on rewards.

» 30% report delays in car purchases and 15% have delayed home purchases due to inflation concerns.

» 51% say they are in worse financial condition than they were a year ago.

Things are not looking very good with the latest inflation figures coming out. According to the latest data from the US Bureau of Labor Statistics, the cost of living is up 8.3% over the past year and is not yet showing signs of decreasing. There is no shortage of opinion among Americans as to who is to blame or what is the best course of action from here.

To understand how inflation is affecting people, Dollarsprout conducted a survey among a broad sample of Americans from all walks of life. Here are the results.

The irony between cause and solution

While it’s reasonable to think that many different factors contribute to inflation, when we asked what people think is the biggest cause, the major answer was “government spending.”

What was most surprising, however, was the response we saw when asked about one possible solution: stimulus checks. In recent months, several states have announced that they are issuing stimulus checks to citizens.

See also  Best investment trading apps in October 2022

Despite government spending being cited as the leading cause of inflation, 3 out of 4 respondents supported the idea of ​​stimulus checks as the government’s response to inflation.

75% of Americans support the idea of ​​stimulus checks as the government's response to inflation.
How are people adapting to the increased prices?

When inflation concerns began to mount late last year and early this year, many consumers were slow to make changes. The Fed infamously claimed that inflation was “temporary,” meaning it would pass quickly. The reality is starting to sink in now that inflation has been here for a while, and is now having a more noticeable impact on consumers.

Chart showing changes in buying behavior due to inflation, with the most common change choosing generic brands over store brands (70%).

The issue of inflation is much more important than just raising the prices of eggs and bread by a few cents. In fact, over 50% of the survey respondents reported postponing a major purchase due to the current inflationary environment.

30% of respondents said they have postponed a vehicle purchase, and 15% reported delaying a home purchase due to inflation concerns.
Many are not using all the tools at their disposal

With food, gas, and housing all becoming more expensive and wages not rising fast enough to make up, people are running out of options. However, the data shows that many people are still under-utilizing all the possible tools at their disposal to combat inflation.

What tools are people using to tackle inflation?  The most common answer was interest checking accounts, followed by cash back credit cards and cash back mobile apps.

And seeing how common cash back credit cards are, it’s surprising to see that 65% of people didn’t realize they could double the rewards on a single purchase using a cash back credit card and cash back mobile apps or browser extensions . , For example, if a Chase card offers 1.5% cash back and the Cash Back Chrome extension offers 2% cash back at a particular retailer, the buyer will get a combined 3.5% cash back on a single purchase.

See also  The fourth quarter starts now, and it’s not looking good for the economy

With inflation sitting at just over 8% at the time of this report, double dipping on cash back is perhaps the single most important way to fight rising costs. Getting 4% cash back on something that costs 8% more than last year goes a long way.

65% of respondents didn't know that they could use cash back credit cards and cash back websites or apps on a single purchase and double dip on rewards.

Another common blindspot among consumers is those actively looking for coupon codes. We often think of coupon codes when we see an influencer share their code on Instagram or a retailer sends a coupon code in an email, but not just because you’ve got a coupon code marketed to you. See, that doesn’t mean it doesn’t exist. More than 1 in 10 online shoppers never consistently search for discount codes, and only a little less than half always see one. The rest only “sometimes” check for discounts.

Some cash back extensions like Honey will automatically find any available coupon code without the user having to go out of their way to search.

How often do you look for coupon codes while shopping online?  Most answer sometimes or never.
People’s finances are headed in the wrong direction

To get a more accurate picture of how people are feeling about their overall finances (not whether it’s related to inflation), we asked people if they thought their situation was higher than it was 12 months ago. I was better or worse.

Is your overall financial situation better or worse than it was 12 months ago?  Only 26% said it was better.

The results weren’t exactly inspiring, but not surprising either. The same was true for our question on retirement savings, where 25% say they are saving less now and 24% say they are not saving for retirement at all.

How have you adjusted your retirement savings contributions over the past 6 months?  Only 22% are saving more, the rest are either saving the same amount, reducing, or not saving at all.

Source link

– Advertisement –